The Auto Filename plugin simplifies file naming in Obsidian by automatically renaming files based on their first line or header content. It is particularly useful for users who frequently create new notes or files. The plugin allows customization of settings, such as selecting target folders, defining the number of characters to use for filenames, and enabling YAML support. It also offers features like hiding inline titles for specific folders and renaming all files in a folder with a single click. With adjustable performance settings, users can tailor the plugin's behavior to their workflow, making file management more efficient.